what is the best indicator for spotting support & resistance on charts?
Simple Moving Average (SMA) & Fibonacci Retracement are some good indicators I use. My 14-day SMA curve acts as support when price is above it and acts as resistance when price is below it. It is not perfect, so I don't rely on it 100% i just use it as a guide.
Fibonacci retracement levels can also act as support and resistance, especially the golden fib level of 61.8%
1. Moving Averages (MA20, MA50, MA200)
Not a traditional S&R indicator, but widely used as dynamic support & resistance.
Examples:
Price bounces off the 50 EMA
The 200 SMA often acts as major support or resistance
Good for trend-following traders.
2. Fibonacci Retracement Tool
One of the strongest tools for identifying:
Pullback support (38.2%, 50%, 61.8%)
Resistance levels
Trend continuation zones
Highly used in forex, crypto, stocks.
3. Price Action Indicators (Highs & Lows)
These indicators plot:
Previous day high
Previous day low
Weekly high/low
Swing highs and lows
Useful because markets often react to these levels.
1. Moving Averages (MA20, MA50, MA200)
Not a traditional S&R indicator, but widely used as dynamic support & resistance.
Examples:
Price bounces off the 50 EMA
The 200 SMA often acts as major support or resistance
Good for trend-following traders.
2. Fibonacci Retracement Tool
One of the strongest tools for identifying:
Pullback support (38.2%, 50%, 61.8%)
Resistance levels
Trend continuation zones
Highly used in forex, crypto, stocks.
3. Price Action Indicators (Highs & Lows)
These indicators plot:
Previous day high
Previous day low
Weekly high/low
Swing highs and lows
Useful because markets often react to these levels.
Pivot Points Indicator.
Pivot point indicators automatically calculate:
PP (pivot)
Support levels (S1, S2, S3)
Resistance levels (R1, R2, R3)
✔ Great for intraday trading
✔ Easy to read
✔ Works well in forex, indices, metals